In a Cargo Systems Messaging Service (CSMS) bulletin published on October 29, 2026, U.S. Customs and Border Protection (CBP) provided guidance on the implementation of the modified Section 338 duties on certain products of Canada.
The guidance follows the October 23, 2026, Presidential Proclamation, “Further Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles”.
The CSMS includes entry filing instructions for the modified duties, including the applicable Chapter 99 tariff provisions. CBP also identifies HTSUS classifications removed from the 50% additional duty under HTSUS 9903.03.14 and confirms that 100 additional classifications are now subject to that provision.
CBP also confirmed that the additional duties imposed under HTSUS 9903.03.12 through 9903.03.14 are eligible for drawback.
In addition, products entered into a Foreign Trade Zone (FTZ) that are subject to the duties imposed by the proclamation may only be entered under “privileged foreign status,” unless eligible for admission under “domestic status,” and will be subject to these Section 338 duties when entered for consumption.
The modified section 338 duties apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 30, 2026.
CSMS #70314289 can be found here:
https://content.govdelivery.com/bulletins/gd/USDHSCBP-430e931?wgt_ref=USDHSCBP_WIDGET_2
The “Further Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles” Presidential Proclamation can be found here:
https://www.whitehouse.gov/presidential-actions/2026/10/further-modifying-the-scope-of-products-of-canada-subject-to-the-additional-duties-imposed-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-motor-vehicles/
